real estate practise unit 1 Flashcards
chapter 1 - 17
What is brokerage in real estate?
The business of bringing people together in a real estate transaction.
Discussed in detail in Unit 8.
Define appraisal in the context of real estate.
The process of developing an opinion of the market value of real property.
Discussed in detail in Unit 16.
What does property management involve?
The business of managing real estate to protect the owner’s investment and maximize the owner’s return.
Discussed in detail in Unit 19.
What is the focus of financing in real estate?
The business of arranging for or providing funds for real estate transactions.
Discussed in detail in Units 12 and 13.
What is subdivision and development in real estate?
The activities of dividing a large parcel of real estate into smaller ones and constructing improvements on the land.
Discussed in detail in Unit 20.
What is home inspection?
The activities involved in conducting a visual survey of a property’s site conditions, structure, and systems, and preparing an analytical report useful to both buyers and homeowners.
Discussed in detail in Unit 14.
What is the purpose of counseling in real estate?
Providing clients with competent and independent information and advice to assist in their real estate investment decisions.
What does education in real estate entail?
The provision of real estate education opportunities to both practitioners and consumers.
List other settings where real estate expertise is required.
- Practice of law
- Corporations with extensive land holdings
- Government agencies
What types of properties are classified as residential?
- Single-family dwellings
- Duplexes and double houses
- Triplexes
- Fourplexes
- Apartments
- Townhouses
- Condominiums
- Mobile homes
- Manufactured housing
- Modular housing
- Real estate for specific residential purposes
Define commercial real property.
Office buildings, retail stores and shopping centers, and other specialized facilities such as marinas and air parks.
What characterizes mixed-use properties?
Properties that allow commercial and residential uses in the same building.
What types of properties are classified as industrial?
- Factories
- Industrial parks
- Warehouses
- Power plants
What is included in agricultural real property?
- Farms
- Ranches
- Orchards
- Vineyards
- Feedlots
- Hatcheries
- Timberland
What are special purpose properties?
- Churches
- Schools
- Cemeteries
- Government-owned property
What is one reason people buy homes?
For many different reasons, including personal, financial, and lifestyle factors.
List types of housing.
- Single-family detached house
- Apartment building
- Condominium
- Cooperative
- Planned unit development (PUD)
- Mixed-use development (MUD)
- Converted-use properties
- Factory-built housing
True or False: Federal law prohibits discrimination in housing and housing-related services.
True.
What economic forces set prices for real estate?
Supply and demand.
List characteristics of real estate affecting supply and demand.
- Uniqueness
- Immobility
- Effect of natural disasters
- Changes in financial markets
- Local events
What happens to prices when supply increases relative to demand?
Prices will generally drop.
What happens to prices when demand increases relative to supply?
Prices will generally rise.
What factors affect supply in real estate?
- Labor force availability and material costs
- Government controls at all levels
- Government monetary policy
What factors affect demand in real estate?
- Population
- Demographics
- Employment and wage levels
Fill in the blank: Tax deductions for mortgage interest payments apply to loans up to _______ on first and second homes taken out prior to December 14, 2018.
$1 million
What is the exclusion limit on profit for married couples selling their principal residence?
Up to $500,000.
What is the exclusion limit on profit for single taxpayers selling their principal residence?
Up to $250,000.
